**Title: Inventory Costing Methods Analysis****Simple Plan Enterprises Inventory Records**Simple Plan Enterprises uses a periodic inventory system. Its records showed the following:- **Inventory, December 31, using FIFO**: - 44 Units @ $17 = $748- **Inventory, December 31, using LIFO**: - 44 Units @ $13 = $572**Transactions in the Following Year:**| Date | Units | Unit Cost | Total Cost ||----------------|-------|-----------|------------|| Purchase, January 9 | 56 | $18 | $1,008 || Purchase, January 20 | 116 | $19 | $2,204 || Sale, January 11 | 86 | $41 per unit | || Sale, January 27 | 62 | $42 per unit | |**Required Tasks:**1. **Compute the Number and Cost of Goods Available for Sale, the Cost of Ending Inventory, and the Cost of Goods Sold under FIFO and LIFO.**2. **Compute the Inventory Turnover Ratio under the FIFO and LIFO Inventory Costing Methods.**3. **Assess Whether the Inventory Method Used Makes a Significant Difference in the Inventory Turnover Ratio.****Instructions:**Complete the tasks by entering your answers in the tabs provided.**Required 1: Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO.**- **FIFO:** - Number of Goods Available for Sale (Units): _____ - Cost of Goods Available for Sale: _____ - Cost of Ending Inventory: _____ - Cost of Goods Sold: _____- **LIFO:** - Number of Goods Available for Sale (Units): _____ - Cost of Goods Available for Sale: _____ - Cost of Ending Inventory: _____ - Cost of Goods Sold: _____**Complete all calculations to navigate to Required 2.**This educational exercise emphasizes understanding FIFO and LIFO methods to evaluate their impact on financial reporting and inventory management.

Under the FIFO inventory method, the units purchased first are sold first, while under the LIFO…

Answered: Simple Plan Enterprises uses a perlodic…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hess Company's inventory records show the following data for the month of September: Units Unit Cost Inventory, September 1 100 $3.00 Purchases: September 8 450 3.50 September 18 300 3.70 A physical inventory on September 30 shows 150 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system. (1) Ending inventory : (2) Units available for sale: (3) Cost of goods sold:
Hess Company's inventory records show the following data for the month of September: Units Unit Cost Inventory, September 1 100 $3.00 Purchases: September 8 450 3.50 September 18 300 3.70 A physical inventory on September 30 shows 150 units on hand.Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system. Ending inventory $enter a value of ending inventory in dollars Cost of goods sold $enter a cost of goods sold in dollars
Franco Company's inventory records showed the following transactions for the fiscal period ended June 30: Date Description Units Cost per Unit / Sales June 1 Inventory 700 $5.50 June 3 Purchase 400 $6.40 June 15 Sale 450 $12.00 June 22 Purchase 650 $6.70 June 30 Sale 500 $12.50 Required: Compute the ending inventory and the cost of goods sold under the FIFO cost flow assumption assuming a perpetual inventory system.
Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: → 56 Units @ $23 = $1.288 Inventory, December 31, using FIFO Inventory, December 31, using LIFO 56 Units @ $19 = $1,064 Units Total Cost Transactions in the Following Year Purchase, January 9 Purchase, January 20 Sale, January 11 (at $47 per unit) Sale, January 27 (at $48 per unit) Unit Cost 68 24 $ 1,632 118 25 2,950 98 74 Required: 1. Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO. 2. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods. 3. Does the inventory method used make a significant difference in the inventory turnover ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO. FIFO LIFO…
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Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO. Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning inventory 156 units @ $10 = $1,560 May 5 Purchase 226 units @$12 = $2,712 May 10 Sales 146 units @ $20 May 15 Purchase 106 units @$13 = $1,378 May 24 Sales 96 units @ $21
The inventory records for Radford Company reflected the following: Beginning inventory @ May 1 First purchase @ May 7 Second purchase @ May 17 Third purchase @ May 23 Sales @ May 31 700 units @ $3.60 2,700 units @ $5.10 What is the amount of cost of goods sold assuming the LIFO cost flow method? Multiple Choice $9,720 $9,430 $8,640 $9,180 800 units @ $3.20 900 units @ $3.40 1,100 units @ $3.50
The accounting records of Kingbird Electronics show the following data. Beginning inventory Purchases Sales 3,060 units at $7 7,140 units at $9. 8,590 units at $12 Determine cost of goods sold during the period under a periodic inventory system using (a) the FIFO method, (b) the LIFO method, and (c) the average-cost method. Cost of goods sold FIFO SA $ LIFO $ Average-cost $
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Calculate the cost of goods sold dollar value for B65 Company for the month, considering the following transactions under last-in, first-out (LIFO) cost allocation methods and using perpetual inventory. Beginning inventory Purchased Sold Sold Ending inventory $6,000 $6,975 $0 $5,625 Number of Units 100 80 50 25 105 Unit Cost $66 75 Sales $120 125
Roseanne Company's inventory records show the following data: Units Unit Cost Inventory, January 1 10,000 $9.00 Purchases: June 18 9,000 8.20 November 8 6,000 7.25 A physical inventory on December 31 shows 5,000 units on hand. Under the FIFO method, the December 31 inventory is $41,000. $40,725. $45,000. $36,250.
Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. Required: 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. Date Activities Units Acquired at Cost Units Cost per unit Total cost Units Units Sold at Retail Selling price per Total Sales January 01 Beginning inventory 205 $13.00 $2,665.00 January 10 January 20 January 25 Sales Purchase Sales 165 $22 $3,630.00 140 $12.00 $1,680.00 145 $22 $3,190.00 January 30 310 $11.50 655 Purchase Totals Notice that cost of goods sold, $3,917.22, plus ending inventory, $3,992.78, equals cost of goods available for sale, $7,910.00. Weighted Average Cost of Goods Sold $3,565.00 $7,910.00 310 $6,820.00 Inventory Balance Units Date Activities Cost per unit Cost of goods sold Units Cost per Total Cost January 01 Beginning inventory 205 unit $13.00 $2,665.00 January 10 Sales 165 $13.000 $2,145.00 40 $13.00 $520.00…

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